The Vodafone 725 is a candybar handset that is capable of 3G and quad-band GSM and was manufactured by Huawei exclusively for Vodafone. It is based on Qualcomm's "Value Platform MSM6245 chipset and has a 2.2" diagonal 240x320 TFT display, 2.0MP primary camera module and a VGA secondary camera module, and it also features Bluetooth (V2.0).
Mainstream users with focus on cost and internet capabilities. This phone is marketed toward, per Vodafone, ""customers who want to use internet and entertainment services on their mobile."
Release / Availability
Pricing / Availability
Vodafone's press release states that it is retailing the unit for less than $150 USD.
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 1.04M units.
As a reminder, teardown volume production assumptions are primarily used for our cost analysis in terms of amortized NRE and tooling costs, especially for custom components specific to the model being analyzed (mechanical components especially). Unless assumed volumes are different by an order of magnitude, minor changes in volume (say 1 million vs. 2) rarely have a large net effect on our final analysis because of this.
iSuppli's Design Forecast Tool (DFT) and Market Shares
As part of iSuppli's Design Forecast Tool (DFT), we forecast handset shipments by major design feature and manufacture, as well as the number of design starts a manufacturer will have by feature set.
From our Design Forecast Tool (DFT), we estimate unit shipments of 98 million WCDMA handsets in the 2008 global market, furthermore we estimate 289 million 2MP camera phone units to ship in the 2008 global market.
Main Cost Drivers Representing ~71% of Total Direct Materials
Qualcomm - MSM6245 - Baseband Processor - Single-Chip, Quad-Band GSM/GPRS, GPS, UMTS & Bluetooth
ST Microelectronics - VS6724 - Camera Module - 2MP CMOS, 1/3.8'' Format, Fixed Lens
Display Module - 2.2' Diagonal, 65K Color TFT, 240 x 320 pixels
Samsung Semiconductor - K5D1G13ACH-D075 - MCP - 1Gb NAND Flash + 512Mb Mobile SDRAM, 1.8V
Qualcomm - RTR6275 - RF Transceiver - ZIF, Quad-Band GSM/GPRS/EDGE Transceiver, Tri-Band UMTS 850/1900/2100MHz Transmitter, Single Band UMTS Receiver
Huawei Technologies - HBU570 - Battery - Li-Ion, 3.7V, 900mAh
ST Microelectronics - VS6525 - Camera Module - VGA CMOS, 1/10' Format, Fixed Lens
Unimicron - 6-Layer - FR4/RCF HDI, 2+2+2, Lead Free
Qualcomm - PM6650 - Power Management IC
Huawei Technologies - TPCA-053065VY - Charger - 5.3V, 650mA
RF Micro Devices - RF3161 - PAM - GSM/EDGE Quad-Band, GSM850/EGSM900/DCS1800/PCS GMSK1900, w/ Integrated Power Control
Enclosure, Main, Front - Injection Molded Clear Polycarbonate, Painted, Silkscreened, Chromed, w/ 6 Brass Inserts
Murata - Antenna Switch - GSM/UMTS Dual Mode
Materials and Manufacturing $65.47
What Is Not Included in our Cost Analysis
The total materials and manufacturing costs reported in this analysis reflect ONLY the direct materials cost (from component vendors and assorted EMS providers), AND manufacturing with basic test. Not included in this analysis are costs above and beyond the material manufacture of the core device itself - cost of intellectual property, royalties and licensing fees (those not already included into the per component price), software, software loading and test, shipping, logistics marketing and other channel costs including not only EMS provider and the OEM's margin, but that of other resellers. Our cost analysis is meant to focus on those costs incurred in the manufacture of the core device and exceptionally in some circumstances the packaging and literature as well.
Huawei's Relationships / Manufacturing
We do not track, as part of iSuppli research, Huawei's manufacturing and EMS relationships, however, based on their Chinese origins, we are assuming that Huawei are building in house and sourcing, where not otherwise noted domestically in China.
Country of Origin / Volume Assumptions
Based on markings, the unit was assembled in China. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were all domestically sourced in China.
Country of origin assumptions relate directly to the associated cost of manufacturing, where calculated by iSuppli. In the cases of 'finished' sub-assemblies (such as Bluetooth modules), we do not calculate internal manufacturing costs, but rather assess the market price of the finished product in which case country of origin assumptions may or may not have a direct effect on pricing.
Remember also that labor rates are applied directly only to hand inserted components and systems in our bill of materials, and although regional assumptions do, these new rates do not have a direct effect on our modeled calculations of placement costs for automated SMD assembly lines. ""Auto" inserted components (such as SMT components) placement costs are calculated by an iSuppli algorithm which allocates a cost per component based on the size and pincount of the device. This calculation is affected by country or region of origin as well.
Design for Manufacturing / Device Complexity
The Vodafone 725 has a total component count (less box contents) of 562 components (not including box contents), of which 77 are mechanical in nature - this seems well within the norms for a phone with this type of feature set.
Component counts have a direct bearing on the overall manufacturing cycle times and costs, and also can increase or decrease overall yields and re-work. Our calculations of manufacturing costs factor counts and more qualitative complexities in the design.
Note that manual labor has a much smaller effect on auto-insertion assembly lines (for the Main PCB, for example), where manufacturing costs are much more capital equipment intensive and driven by these investment costs.
The design revolves around a Qualcomm MSM6245 chipset (part of Qulacomm's Value Platform) - or basically a near turn-key solution from Qualcomm, as is often the case with phones based on a Qualcomm core baseband chip. This includes the MSM6245 baseband processor, the PM6650 power management chip (found in 90%+ of Qualcomm-based designs we see), and the Qualcomm RTR6275 RF Transceiver. In addition there are RF Micro Devices and Anadigics in the PAM slots for GSM and WCDMA respectively, and a Samsung NAND/SDRAM MCP in the memory slot.
Overall this is a fairly basic design of limited scope and cost.
Here is a summary of major components by assembly:
- Baseband Processor - Qualcomm - MSM6245 - Single-Chip, Quad-Band GSM/GPRS, GPS, UMTS & Bluetooth
- MCP - Samsung Semiconductor - K5D1G13ACH-D075 - 1Gb NAND Flash + 512Mb Mobile SDRAM
- RF Transceiver - Qualcomm - RTR6275 - ZIF, Dual Model WCDMA(UMTS)/HSDPA 1800/1900/2100 MHz & GSM/GPRS/EDGE 850/900/1800/1900 MHz
- PAM - Anadigics - AWT6279R - WCDMA, 1920MHz to 1980MHz
- PAM - RF Micro Devices - RF3161 - GSM/EDGE Quad-Band
- Power Management - Qualcomm - PM6650 - Power Management IC
- Bluetooth - Qualcomm - BTR1722B - 2.4GHz, V1.2 & V2.0 Compliant
- 2.2' Diagonal, 65K Color TFT, 240 x 320 Pixels
- Primary - ST Microelectronics - VS6724 - 2.0MP, CMOS, 1/3.8' Format, Fixed Lens
- Secondary - ST Microelectronics - VS6525 - VGA, CMOS, 1/10' Format, Fixed Lens